March Market Snapshot for Harborne and Edgbaston

Market snapshot for Harborne and Edgbaston

In this latest update, we will be reviewing market activity and house prices in February within the local areas of Harborne and Edgbaston, market trend insight and providing a comprehensive overview of the UK property market.

The numbers for the Harborne Hosuing market in February:

Edgbaston B15 activity in February (houses only):

A recurring theme for the property market in recent times is an increase in the number of properties for sale with February observing a 6.15% increase on the same period last year and this continues to be at a 10-year high as reported by Rightmove in their latest House Price Index.
Some commentators predicted an influx of properties hitting the market a couple of years ago as interest rates soared, but this was not the case as the majority of homeowners had an equity buffer which allowed them to soak up a lot of the increased costs following a dozen years of record low mortgages, thus meaning there was not the high levels of forced sellers entering the market that were expected.

As interest rates have now settled to a more normal long-term average, the discretionary and more aspirational movers have returned to the market, thus resulting in more properties for sale, with a 2.40% increase in new listings hitting the market in February compared to January and a 6.56% jump on the six-year average for February.
However, this was actually a 1.74% drop on February 2024, highlighting the fact it is not an oversupply of new listings entering the market that is causing the 10-year high of properties for sale.

Why do we keep seeing a rise in the number of properties for sale?
According to Rightmove, compared to a year ago, properties are taking almost 10% longer to sell and my research has identified fewer properties are withdrawing from the market, plus there has also been a rise in the number of fall-throughs, and sellers returning to the market.
A quick check on Rightmove in mid March shows us that only 44% of properties advertised are currently marked as under offer/SSTC and all of this added together would explain why there are more properties for sale versus recent years.

The wider choice of properties available for buyers has meant an 8.89% increase in sales agreed compared to January and a 4.46% rise on February last year.
Another positive is that the number of sales agreed in February was in line with the six-year average and a very strong sign that there is confidence in the market right now despite the upcoming changes to stamp duty at the end of the month.
Overly optimistic initial asking prices continue to be another key theme in the market as evidenced by a 12.33% rise on the number of price reductions compared to February 2024 and 34.57% increase on the six-year average as well.
There is clearly still a wide gap between the expectations of what a buyer and seller thinks a property is worth and whilst this will always be the case, it has most definitely been more prominent in the market over the past couple of years as stock levels have risen and affordability has tightened.
However, it is a positive to see sellers reacting to the market by adjusting their pricing expectations as opposed to just taking their property off the market with the number of properties withdrawing down a massive 45.28% compared to February last year.

The increase in new listings entering the market, sellers returning to the market, properties for sale, sales agreed, price changes, and then the reduction in the numbers of sellers withdrawing from the market shows just how committed homeowners are to moving right now.

The latest Rightmove House Price Index reported a 0.5% monthly increase to average asking prices and a 1.4% rise compared to the last year, with Zoopla reporting a 0.19% drop on last month and 1.90% uplift on 2024.
Independent research by Opening The Gates (an excellent market intelligence source) found that the average asking price of new listings hitting the market in February were 1.13% higher than the previous month of January and 1.36% higher than February 2024.
However, the above data is based on the average asking price of new listings and seeing as though 56% of properties on the market remain unsold, it would make sense to look at those that have had sales agreed.
Nationwide saw a 0.40% monthly increase and a 3.90% annual rise, with Halifax observing a 0.70% monthly uplift and a 3% annual gain.
The above figures are based on mortgage approval data and give a real time insight into the movement of house prices.
Opening the Gates research into properties that had sales agreed in February found a monthly increase of 0.82% and annual growth of 1.99%.

Conclusion

As 2025 has really kicked into gear, new data from Barclays Property Insights shows that consumers are still feeling resilient, despite being less confident in the UK property market.

Rent and mortgage spending increased slightly year-on-year in January to 2.0%, up from 1.8% the month before, but despite this increase in consumer confidence in their ability to afford rent and mortgage payments remained unchanged month-on-month at 52%.

Amid rising house prices and an upcoming change in the rules around stamp duty, confidence in the UK’s property market has dropped. Only 24% of those surveyed said they felt confident about the market’s prospects, the lowest figure recorded for the last six months. Despite the rising costs of buying a home, almost one in five (23%) of renters believe that home ownership is within their reach within the next five years, with three in 10 currently saving for a deposit (31%).

Whilst the report from Barclays highlights confidence in the property market is a mixed picture, the strong start to 2025 has shown no signs of slowing down despite the uncertainty surrounding the stamp duty deadline at the end of the month and what this might mean for activity levels and house prices.

For further insights and indeed analysis of what this means for you and your home within Harborne, Edgbaston or surrounding areas, feel free to reach out to director Andy McHugo n 07751 675267 or andy@mchugohomes.co.uk